Price Dip

Definition ∞ A price dip is a temporary decrease in the market value of a financial asset. In cryptocurrency markets, these declines can be sharp and are often viewed by some investors as buying opportunities before a potential price recovery. Dips can be triggered by various factors, including market corrections, negative news, or large sell-offs. Analyzing the duration and magnitude of a dip helps assess market sentiment and potential trends.
Context ∞ Crypto news frequently analyzes price dips, attempting to identify their causes and predict market reactions, influencing investor behavior. Discussions often revolve around whether a dip represents a healthy market correction or a sign of deeper underlying issues. Traders and analysts often refer to buying the dip as a strategy during periods of temporary market weakness.